You can obtain a loan of $100,000 at a rate of 10 percent for two years. You
Question:
a. What is the duration of the loan under both methods of payment?
b. Explain the difference in the two results
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a b Duration decreases dramatically when a portion of the principal is repaid at the ...View the full answer
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Related Book For
Financial Institutions Management A Risk Management Approach
ISBN: 978-0071051590
8th edition
Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders
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